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Financial advisors are well aware of the tax rules that affect retirement withdrawals, required minimum distributions, Roth conversions and rollovers. Clients, though, can often make major wealth-killing mistakes when managing their retirement savings.
Such mistakes are becoming increasingly common as Americans find more of their household wealth concentrated in retirement accounts.
A growing number of individuals are making “fatal errors” in the rollover process, especially as people change jobs more frequently and face tricky decisions about whether to consolidate accounts from past jobs. Here are some Key mistakes that people can make during the rollover process — potentially robbing them of a substantial portion of their wealth through penalties, excise taxes and fees.
Here are two potential pitfalls to avoid:
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